Analysis of the status of Green Public Procurement in India highlighting the challenges and making recommendations. There is no reference to ISO 20400 in this report.
Not long ago, supply chains were viewed as background functions – logistical pipelines hidden from the public eye. Consumers bought products without asking questions about where raw materials came from, how workers were treated, or what environmental footprint was left behind. But that era is over.
Today, supply chain transparency is becoming a business necessity. From regulatory pressure to investor and customer demand, organisations are finding themselves under scrutiny like never before. Investors, governments, and consumers want to know not just what companies sell, but how they source, produce, and deliver.
The truth is simple: in 2025 and beyond, opacity is no longer an option. Companies that fail to embrace transparency will not just risk reputational harm – they will risk their very survival.
The Drivers of Transparency
Regulatory Frameworks: Governments around the world are introducing stricter regulations. For example, the UK’s Modern Slavery Act, the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), and various climate disclosure laws are forcing companies to map and report on their supply chains. Non-compliance is no longer a slap on the wrist; fines, sanctions, and exclusion from markets are becoming common.
Consumer Expectations: Modern consumers are becoming hyper-aware. Social media campaigns can expose unethical sourcing within hours, and “cancel culture” has proven its power. Millennials and Gen Zin particular are demanding ethical and sustainable products, with surveys showing that over 70% prefer brands with transparent practices.
Investor Demands: Environmental, Social, and Governance (ESG) factors are now core investment criteria. BlackRock, Vanguard, and other major players increasingly assess supply chain transparency before allocating funds. If your supply chain can’t stand up to scrutiny, access to capital may shrink and the cost of borrowing may rise.
Operational Resilience: The COVID-19 pandemic revealed just how fragile opaque supply chains can be. Companies without visibility into their second- and third-tier suppliers were blindsided by shortages. Transparency isn’t just about ethics – it’s about resilience and the ability to anticipate disruptions.
What Supply Chain Transparency Really Means
Transparency is not simply about publishing a supplier list or issuing a glossy sustainability report. At its heart, it means:
Knowing: Mapping suppliers across multiple tiers, not just first-tier vendors.
Disclosing: Sharing accurate, timely data on sourcing, labour conditions, and environmental impact.
Improving: Acting on findings to reduce risks and create positive impact.
It’s an ongoing process, not a tick-box exercise. True transparency goes hand in hand with accountability.
The Risks of Opaqueness
Organisations that continue to hide or ignore their supply chain realities are playing a dangerous game. Risks include:
Reputational Damage: A single exposé on child labour or deforestation can wipe years off brand equity.
Legal Penalties: Breaching modern slavery or environmental laws can lead to fines and lawsuits.
Loss of Market Share: Competitors with transparent and sustainable practices will win the loyalty of ethically minded customers.
Operational Shocks: Without visibility, risks such as supplier bankruptcy, political instability, or natural disasters hit harder.
In short, opacity equals vulnerability.
The Business Case for Transparency
Embracing transparency is not merely about compliance – it’s also a value driver. Here’s how:
Trust and Brand Loyalty:Customers increasingly reward brands they believe in. Patagonia, for example, has built a loyal customer base by making its supply chain part of its identity.
Access to Finance: Many banks and investors prioritise companies with robust ESG disclosures. Transparency strengthens creditworthiness.
Efficiency Gains: Mapping the supply chain often uncovers inefficiencies, duplicated costs, or missed opportunities for collaboration.
Innovation and Partnerships: Transparency enables collaboration with suppliers to co-create sustainable solutions.
Talent Attraction: Employees, especially younger generations, want to work for organisations with strong ethical practices.
How to Build Transparency into the Supply Chain
Start with Mapping:Begin by identifying your suppliers beyond tier one. Technology tools, such as blockchain and AI-powered platforms, make this more feasible than ever.
Engage Suppliers: Transparency cannot be imposed – it must be built collaboratively. Training, capacity-building, and incentives help suppliers come on board.
Adopt Standards and Frameworks: Standards such as ISO 20400 (Sustainable Procurement Guidance) provide structured approaches. Aligning with frameworks like the Global Reporting Initiative (GRI) or the UN Sustainable Development Goals also ensures consistency.
Measure and Report: Set measurable KPIs – such as carbon emissions, living wages, or diversity metrics. Publish annual updates, but also communicate openly in real time when issues arise.
Embed Culture of Transparency:This is not just a procurement function’s job. It requires board-level commitment, cross-department collaboration, and employee buy-in. Transparency should become a cultural norm.
The Future of Supply Chain Transparency
Looking ahead, transparency will evolve from reactive compliance to proactive accountability. Companies will not only disclose what’s happening but also invite stakeholders into the conversation. Expect:
Real-Time Data Sharing: Live dashboards showing carbon emissions, working conditions, and supplier locations.
Tech-Driven Verification:Blockchain-based supply chain records, drone monitoring, and AI analysis.
Stakeholder Collaboration: NGOs, governments, and businesses working together to solve systemic issues.
Radical Transparency as a Differentiator: Brands that go beyond legal requirements will stand out.
As expectations rise, transparency will become as fundamental as financial reporting.
Conclusion
Supply chain transparency is no longer an optional extra – it’s the new baseline for doing business. Organisations that proactively embrace it will unlock trust, resilience, and competitive advantage. Those who resist will find themselves left behind, vulnerable to crises and out of step with the times.
The choice is stark: adapt and thrive in a transparent future, or cling to opacity and risk obsolescence. In today’s world, the light is always on and it’s shining straight through the supply chain.
